Brazil: Eneva expands gas reserves to 47.528 billion m³

This is an automated translation of the original release published in Portuguese.

By Eneva

February 2, 2023

Eneva, an integrated energy company, which operates from exploration and production (E&P) of natural gas to the supply of customized solutions, currently holds the largest area under exploratory concession onshore in Brazil, with 62,380 km², incorporated 12.035 billion of cubic meters (Bm³) of natural gas to its proven and probable reserves (2P), in 2022. With this addition, Eneva's 2P reserves reached the mark of 47.528 billion m³.

The result was audited by the independent consultancy Gaffney, Cline & Associates, Inc. (“GCA”), responsible for the Executive Audit Reports of Reserves and Resources of Fields, Areas and Blocks of Eneva in all areas in which the company has a stake, in the Parnaíba (MA), Amazonas (AM) and Solimões basins (AM).

“Eneva continues to apply the best practices in the exploration, development and production processes of natural gas fields. The increase in our reserves is of great strategic significance for the company in the north of the country, enabling the expansion of our R2W model, the Reservoir to wire, and our distribution of LNG by road modal to industrial customers,” says Fausto Caretta, Director of Exploration, Development and Construction of Eneva.

The biggest growth in volumes, of 7.490 billion m³, compared to the previous year, occurred in the Amazon Basin, which now has 14.455 billion m³ of gas reserves. It is in this basin that Eneva is developing the Azulão 950 project, which will have the Azulão I and II Thermoelectric Power Plants (UTE) Azulão I and II, after winning two Capacity Reserve Auctions by the National Electric Energy Agency ( Aneel ) in lots relating to the North Region.

In the Parnaíba Basin, where the company's largest gas and electricity production complex operates, the expansion was 4.545 billion m³, from 2021 to 2022. As a result, the total volume of reserves in Maranhão stood at 33 billion m³.

The overall net increase in reserves (difference between discoveries and production) of the company closed at 10.966 billion m³ in the year, which made the Reserve Replacement Index (IRR) reach the total mark of 1,125%, at the end of last year. Specifically in the Amazon Basin, the index was 5,238%. While, in Parnaíba, the rate was 490%. This means that, if the average annual production of the last five years is maintained (1.260 billion m³), Eneva is capable of extracting gas from its reserves in Maranhão for more than 26 years.

The main incorporations occurred due to the declaration of commerciality of Gavião Mateiro, in the Parnaíba Basin, and Campo de Azulão, in the Amazonas Basin, where the company obtained positive results in the five development wells drilled in the area.